Canada leads world canola exports
Canada led world exports of canola (turnip or rapeseed) in the first quarter of 2020, with shipments of 2 million 883,000 tons, according to Canadian government data.
Canadian canola exports totaled more than $ 3.2 billion in 2019, dominating the global market, albeit with increasing competition from Ukraine.
China ranked as its main destination, with a total of 627,000 tons, a decrease of 16.9% compared to the period from January to March 2019.
Other prominent destinations were: Japan (297,000 tons), Mexico (304,000 tons) and the United Arab Emirates (290,000 tons).
Canola is cultivated worldwide to produce fodder, vegetable oil for human consumption and biodiesel. The main producers are the European Union, Canada, the United States, Australia, China and India.
For Canada, canola represents a smaller global market than wheat.
In the past 20 years, the number of importers of Canadian canola has grown, while import values have been more evenly distributed among all importers. This suggests that the canola market continues to expand, offering future growth.
Canola exports
Canada has always been the world’s largest exporter of canola used for human consumption. Of the 107 countries that imported canola / rapeseed in 2017, Canada exported 32.
In general, its export markets are not as diverse as its wheat markets, but that is partly due to canola’s unique market structure.
Canada’s canola exports in 2019 illustrate how market conditions can alter trade flows, even if only in the short term. Two unrelated things have happened: anticipated European production fell below the five-year average, and export prices fell after China closed its borders to Canadian canola. Canada’s exports, typically destined for China, went to Europe.
The increase was a positive point as China’s ban on Canadian canola continues, but it’s too early to know if this is true market diversification.
France, the United States, Pakistan, Bangladesh, Germany and Belgium were also important destinations for Canadian canola exports in the first quarter of 2020.
